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Author: DW525 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Roth Strategies? Date: 4/2/1999 8:38 PM
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I hope to start my Roth IRA soon and am looking for the best way to fund it. Is the Foolish Four still considered a good strategy or should I look towards individual stocks? Of course I will invest in a no-load index fund to begin with and then go from there.

Thanks,
Dave
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Author: WilliamLipp Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9644 of 74759
Subject: Re: Roth Strategies? Date: 4/2/1999 10:54 PM
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DW525 Date: 4/2/99 8:38 PM Number: 9641
Is the Foolish Four still considered a good strategy or should I look towards individual stocks? Of course I will invest in a no-load index fund to begin with and then go from there.

As a Fool, you get to choose. To the best of my knowledge, the Foolish Advice is still to begin with index funds or spiders (See Harry Jones Portfolio for more about spiders), then Foolish Four, then decide if you are willing to spend any more time. If yes, consider the Rule Maker Portfolio, the workshop portfolios, and the Rule Breaker Portfolio, and anything else that catches your fancy.

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Author: XCITNOV Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9648 of 74759
Subject: Re: Roth Strategies? Date: 4/3/1999 10:26 AM
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I'd suggest first starting with an index fund (passive only) or perhaps take advantage of SPDR and QQQ or types of vehicles to diversify risk.
As for the Foolish 4 (Dogs of the Dow,) over the long term they tend to outperform the DOW as a whole because they would fall into the "Value" stock category, which over time has outperformed the index. But this is too technical for my tastes as someone who is investing for my retirement (decades down the road).
I'd only invest in individual stocks if I considered it entertainment. I don't expect to beat the S&P 500 or Nasdaq 100 over the next 30 years, but I do enjoy the whole process of tracking stocks and companies so I have decided to buy individual stocks.
If you consider spending hours and hours and hours a month researching companies and reading Forbes, then by all means buy AND HOLD LONG TERM individual stocks, but if this is not "fun" to you, stick with passive index funds, growth funds, etc. ONLY PASSIVE FUNDS!!!

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Author: x4a54 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9650 of 74759
Subject: Re: Roth Strategies? Date: 4/3/1999 1:05 PM
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keeping in mind the possible entertainment value...

this is JUST ME, and Serious Heresy, but --
it struck me that $2000/yr is just **ssing away money, i know i fritter away that much every year, so why not Gamble that much every year ?
so i put all $2000 last year into one stock, and put another $2k this year into the same stock.
if the pile ever gets real big, i might diversify into anther stock)

(IF you do this, pick something that will be fun to watch -- a ccmpany you care about, or LOVE their products, or, is likely to be a roller-coaster)

good luck,

jp

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Author: tmackfool Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9652 of 74759
Subject: Re: Roth Strategies? Date: 4/3/1999 1:30 PM
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keeping in mind the possible entertainment value...

this is JUST ME, and Serious Heresy, but -- it struck me that $2000/yr is just **ssing away money, i know i fritter away that much every year, so why not Gamble that much every year? so i put all $2000 last year into one stock, and put another $2k this year into the same stock. if the pile ever gets real big, i might diversify into anther stock)

(IF you do this, pick something that will be fun to watch -- a ccmpany you care about, or LOVE their products, or, is likely to be a roller-coaster)

good luck,

jp


Isn't part of being Foolish having fun? I am actually considering putting 10% of my 403b into a Pacific Rim fund and I have a DRIP in Intel, partly for their entertainment value.

The only problem with this approach is that for many people $2000/year isn't that easy to come up with, especially for people on lower incomes or who are highly in debt.

If you think $2000/year is no big, then go for it and have fun! But such a strategy for people who will seriously depend on that money for retirement and/or have difficulty raising an extra 2k per year, "entertainment" should rank low on their priorities for investment.

Taylor

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Author: x4a54 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9658 of 74759
Subject: Re: Roth Strategies? Date: 4/3/1999 5:03 PM
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>>Isn't part of being Foolish having fun?
<<<<<<<

it is for me.

>>>for many people $2000/year isn't that easy to come
up with,
<<<<<<<

Absolutely. and i apologize if i gave a different impression.
OTOH: i don't know that i'd recommend stocks at all to someone for whom 2K is a Major amt of money.... the S&P could crash so hard this thursday that it won't
recover for 20 years.... if that'll keep you awake at night, buy CDs...
(and, barring the disaster, you're unlikely to lose with something like KO)

jp


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Author: DW525 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9661 of 74759
Subject: Re: Roth Strategies? Date: 4/3/1999 10:01 PM
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Well, that's exactly what I was thinking about, starting my Roth with KO. However, maybe I'll stick w/ the index fund and DRP w/ it instead.

Dave

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